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BOE hears three offers for its Boones Creek Middle School property

By SERINA MARSHALL
Staff Writer [email protected]

Three offers have been made on the land where the old Boones Creek Middle School once stood.

This piece of property has been vacant since demolition of the school in March 2021.

On Thursday night, Feb. 3, Jerry Petzoldt, CEO and president of TCI Group, a commercial real estate firm in the Tri-Cities area, presented three of the top offers to the board.

Petzoldt, along with Washington County Board attorney, Scott Bennett, reviewed all offers.

“We launched marketing the end of December. We received our first offer on the property the first week of January. We received the second the second week of January and the third the third week of January. So, we had three modified offers,” Petzoldt said at the Feb. 3 meeting. “Before the offers we had 12 inquiries by phone. We had interest in the property from mini storage to apartments to a church.

TCI is now in its sixth week of negotiations and Petzoldt brought the facts and comparisons of each of- fer to go over with the board. According to Petzoldt, all participants are qualified and experienced and will close as quickly as they can.

“The first purchaser is Marathon Realty Corporation out of Abingdon. Marathon is a subsidiary of KVAT food which owns Food City,” Petzoldt said. “They made their offer Jan. 5 and they will escrow their purchase price loans ac- cording to zoning approval, so the funds will be there. The $10,000 deposit is refundable with a 180-day inspection pe- riod which will end Aug. 2, with closing day 15 days after that which will make the latest date would be Aug. 17.”

Petzoldt says that Marathon’s proposed use is retail use related to amenities, and they were not more specific to what that is. The rezoning and annexation process needed with be about 90-120 days, as the approval process has to go through the Johnson City Commission as well as Washington County.

“The next is Red Oak Investments, a Tennessee corpora- tion. The representative is Stan Evans of Evans and Evans Real Estate. The offer was submitted Jan. 25 and the first offer was $1.650 million and right now they are amended at $1.7 million,” Petzoldt said. “The purchase price is being covered by a bank letter and this is an all-cash deal, so the money is there for the investors. There will be a 90-day in- spection period. The closing date would be about June 16.”

According to Petzoldt, Red Oak is not going for rezon- ing and annexation and their purpose for the land is to be determined.

“Cashier Investors, a North Carolina Corporation from Asheville, is represented by Broker, John Spake. Their ini- tial offer was $1.435 million and have raised it to $1.650 million,” Pedzoldt explained. “I just received confirmation they have deposited the full purchase into a separate ac- count should they end up with the contract. Non-refundable deadline is March 21 and inspection period is 45 days. The proposed use they don’t know yet, its commercial use. There is no immediate plan of use for the property, nor rezon- ing or annexation which allows for a shorter tine period.”

Cashier Investors would look to close around May 5, according to Petzoldt, making it the quickest closing of the three purchasers.

The Washington County Board of Education will be having a special called meeting at 5 p.m. Thursday, Feb. 9, to further discuss counter offers on the table.